Overview of Corporate Knights Rating Methodology - The 2019 Global 100
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The 2019 Global 100:
Overview of Corporate Knights Rating
Methodology
W W W. G L O B A L 1 0 0 . O R GGlobal 100 fast facts
Overview Eligibility
Annual ranking of corporate sustainability Size: publicly-listed companies with gross
performance. revenue of a minimum of $PPP-currency $1B
(FY2017).
Released each January during the World
Economic Forum in Davos; published in leading Corporate Knights Industry Group (CKIG) and
media. geography: All industries and geographies are
automatically considered before screening out
companies from certain industries or with
identified egregious practices.
Approach Contact info and to learn more
Ranking is based on publicly-disclosed data Email research@corporateknights.com if you
(e.g., financial filings, sustainability reports). All would like to confirm the correct contacts for
required datapoints are pre-populated. your organization.
Submissions from companies are not required.
Sign up for email updates on future rankings
Companies on the Global 100 Shortlist are and research from Corporate Knights and the
contacted for data verification prior to project Global 100.
completion.
▪ Visit www.global100.org for more details.
Methodology is based on up to 21 key
performance indicators (KPIs) covering
resource management, employee management,
financial management, clean revenue and
supplier performance.
1Ranking is conducted by Corporate Knights, a specialized
media and investment research firm
Corporate Knights is a Toronto-based, employee-owned B Corp that operates in three segments:
– Corporate Knights Magazine
• World's largest circulating magazine focused on sustainability and responsible business.
• Reaches 435,000 of the world’s most influential business and political decision-makers.
– CK Research
• CK Research offers a range of corporate sustainability ratings, investment product ratings and
tools.
• CK Research powers several external research projects (e.g. Newsweek Green Rankings, Carbon
Clean 200, Sustainable Stock Exchange Ranking, Global Green Financial Index).
– Council for Clean Capitalism
• CEO-supported group catalyzing smart and efficient public policy.
• Engages with leading public policy-makers.
2Philosophical perspective of the Global 100
Relevance: The ranking is meant to be representative of business sustainability in
the current socio-economic context.
Transparency: The precise methodology of the ranking and the results of the
process are fully disclosed.
Objectivity: Eligible companies will only be assessed using quantitative data and
performance indicators.
Public data: Only data-points that are part of the public domain are used.
Comparability: Companies are compared against their Corporate Knights (CK)
Industry Group* peers based on performance indicators for which the underlying
data are reasonably well disclosed by their CK Industry Group globally.
Engagement: Companies eligible for the ranking are informed prior to the ranking,
so as to have an opportunity to ensure the necessary data is made available
publicly.
Stakeholders: Stakeholder feedback is actively solicited throughout the project. A
Panel of Experts, consisting of several sustainability practitioners, review and
comment on all aspects of the methodology.
* The Corporate Knights Industry Group (CKIG) is constructed using combinations of FactSet RBICS SubSectors and Industry Groups to
ensure sufficient population for percentile ranking and pairing along resource productivity ratios and clean revenue exposures.
There are 97 CK Industry Groups.
3Overview of Global 100 ranking process
Description Details
Publicly-listed companies. All companies that had a gross revenue in excess of $PPP-
currency $1 billion during the 2017 fiscal year.
Starting
Universe
Companies screened for : Screening criteria outlined in the next slide.
– Sustainability disclosure
Companies that pass all four screens constitute the 2019
practices
Global 100 Shortlist.
– Financial health
Screening – Product categories and
behaviour
– Financial sanctions
Selection Companies in the 2019 Global Selection criteria outlined in the Rating Methodology
100 Shortlist are scored on the section and detailed in Appendix II.
21 KPIs. Companies only scored on the ‘priority KPIs’ for their
respective CK Industry Group, and all the Universal KPIs.
The The 2019 Global 100 is Each GICS* Sector is assigned a fixed number of slots in
Global 100 populated. the final Global 100 list (based on each sector’s
contribution to the total market capitalization of the Global
Consists of the top performing
100’s financial benchmark, the MSCI ACWI).
companies within each
subsector.
* GICS classification is used due to the fact that MSCI, the maker of the MSCI ACWI
Index co-developed and uses GICS 4Screening criteria
Description Details
Companies that did not A ‘priority KPI’ is any of the 21 KPIs whose weight is greater
disclose at least 75% of than zero (0%) in a given CK Industry Group (see slides 7- 11)
the ‘non-universal priority AND is not among the eight Universal KPIs below:
Sustainability
KPIs’ by weight in their
Disclosure – The 8 Universal KPIs applicable for all CK Industry Groups
respective CK Industry
Practices are: Percentage Tax Paid, Pension Fund Status, Supplier
Group are eliminated. Sustainability, Women in Executive Management, Women
on Boards, Sustainability Pay Link, Score, Sanctions
Deductions and Clean Revenue.
Companies with an F The F-Score (the Piotroski F-score) is a measure of the
Financial score below 5 are financial strength of a company.
Health eliminated. The F-score is the sum of the scores for each of nine tests.
See Appendix I for details.
Companies involved in Examples include weapons, tobacco, companies that lobby to
certain products or block climate change policy.
Product
services and behaviours See Appendix IV for a full list of exclusionary screens.
Categories
counterproductive to
sustainable development.
Companies that are The screen measures the amount of money that companies
bottom quartile performers paid out in qualifying fines, penalties or settlements over the
in the CK Financial October 1, 2017 to November 30, 2018 period.
Sanctions Sanctions screen are Sanctions include but are not limited to human rights, labour,
eliminated. environmental, anti-trust and community-related violations
See Appendix II for details.
5Rating methodology
2019 Global 100 Ranking
6Resource management KPIs
KPI Methodology
Revenue (converted to USD using PPP exchange rate) / (Energy use – renewable energy
Energy Productivity
use)
GHG Productivity Revenue (converted to USD using PPP exchange rate) / GHG emissions: scope 1 & 2
Water Productivity Revenue (converted to USD using PPP exchange rate) / Water use
Revenue (converted to USD using PPP exchange rate) / Non-recycled or reused waste
Waste Productivity
generated
VOC Productivity Revenue (converted to USD using PPP exchange rate) / VOC emissions
NOx Productivity Revenue (converted to USD using PPP exchange rate) / NOx emissions
SOx Productivity Revenue (converted to USD using PPP exchange rate) / SOx emissions
Particulate Matter
Revenue (converted to USD using PPP exchange rate) / Particulate matter emissions
Productivity
Companies will only be scored on the KPIs that are deemed “priority
KPIs” for their respective CK Industry Group + the eight universal KPIs
7Financial management KPIs
KPI Methodology
Innovation Capacity R&D expenses / revenue – three year trailing
Percentage Tax Paid Cash tax amount paid / EBITDA – five year trailing (2013-2017)
CEO-Average Employee Pay CEO compensation / average employee compensation
75%*(total DB and DC employer contributions/ FTE employees percentile-ranked
against peers) + 25%*(fair value of DB plan assets/FTE employees percentile-ranked
Pension Fund Status
against peers - (1-(fair value of DB plan assets/liability percentile-ranked against
peers) ). Note: DC contributions include 401(k), RRSPs and equivalents
Supplier Sustainability Score The weighted CK Sustainability Score of a company’s largest suppliers (up to 10
largest suppliers by spend).
Companies will only be scored on the KPIs that are deemed “priority
KPIs” for their respective CK Industry Group + the eight universal
KPIs
8Employee management KPIs
KPI Methodology
Injuries Lost time incidents rate
Fatalities Fatalities/ total number of fill-time equivalent employees
Employee Turnover Number of departures / average total employees
Women representation in executive management team
Women in Executive Management
(percentile-ranked against all companies in the universe)
Women representation on board of directors
Women on Boards
(percentile ranked against all companies in the universe)
Sustainability Pay Link Mechanisms that link senior executive pay to sustainability targets
Companies will only be scored on the KPIs that are deemed “priority
KPIs” for their respective CK Industry Group + the eight universal KPIs
9Deduction due to sanctions
KPI Methodology
Sanction Deductions Total fines penalties and settlements / revenue (one year)
Companies will only be scored on the KPIs that are deemed “priority
KPIs” for their respective CK Industry Group + the eight universal KPIs
10Additional KPIs
KPI Methodology
Clean Revenue Percentage of your total revenue derived from products and services that are
categorized as “clean” according to the Corporate Knights open-source clean revenue
taxonomy, which is informed by synthesis of the below sources and best practices:
- Green Goods and Services (U.S. Bureau of Labor Statistics)
- Environmental and clean Technology Products Economic Account (Statistics Canada)
- Climate Bonds Taxonomy (Climate Bonds Initiative)
- Sustainable Taxonomy (High-Level Expert Group in Sustainable Finance)
- Environmental Goods and Services Sector (Eurostat)
- China Green Bond Endorsed Project Catalogue
- Green Bond Principles
- TCFD recommended metrics
- Other private sector rating agencies with green or sustainability taxonomy
- Industry experts consultation covering all relevant CKIG subsectors with solicited
feedback on industry definition of clean from leading industry experts and government
agencies
* This is a multi-year project by
Corporate Knights to develop Please click on the link below to view the full list of products and services that are
and make publicly-available an categorized as clean
open-source definition of clean
revenue categories for all sub-
sectors; we welcome
comments and suggestions in https://docs.google.com/spreadsheets/d/1Yit1pphFcx-axawF_Y9G8ZBSJe9A-
evolving and refining this clean xft2CSWNuBxAkw/edit?usp=sharing
revenue definition.
This is a Universal KPI: all companies will only be scored on
this KPI irrespective of CK Industry Group
11The Eight Universal KPIs
All companies, irrespective of CK Industry Group will still be assessed on all
eight universal KPIs:
- Percentage Tax Paid,
- Pension Fund Status,
- Supplier Sustainability Score (except financial services organizations)
- Women in Executive Management,
- Women on Boards,
- Sustainability Pay Link
- Sanctions Deductions
- Clean Revenue
12Priority KPIs and weighting
scheme for each CK Industry
Group under the updated
methodology
13Impact-weighted KPIs
Philosophy: Each CK Industry Group accounts for a unique share of global impact for each individual KPI. The bigger the
CK Industry Group's impact for a given performance metric is in relation to others in the CK Industry Group, the higher the
weight of that KPI. Of the 21 indicators, 17 are weighted according to their relative impact, and five are assigned pre-
determined fixed weights: Clean Revenue (50%), Sustainability Pay Link (5%), Supplier Sustainability Score (2.5%),
Women in Executive Management (5%) and Women Board Members (5%). FSB TCFD priority sectors including financials,
are assigned a fixed 50% weight for the Clean Revenue indicator to account for the risks and opportunities posed by the
transition to a low carbon economy. The Supplier, Pay Link and Women diversity indicators are all considered to be
universally applicable and thus assigned fixed weights.
Impact calculation example - Energy use by the Electric Power Generators CK Industry Group as an example:
The average Energy Productivity over the past three years for all companies in the coverage universe is calculated as well
as the average energy productivity for each CK Industry Group. The weight assigned to the Energy Productivity indicator
for a given subsector is a function of the ratio of the subsector average Energy Productivity / entire coverage universe
Energy Productivity.
Weighing KPIs according to impact – Electric Power Generators CK Industry Group as an example:
Electric Power Generators has 21 applicable KPIs. Of these, Clean revenue, Women on Boards, Women in Executive
Management, Supplier Sustainability Score and Sustainability Pay Link have fixed weights (50%, 5%, 5% 2.5% and 5%
respectively). The remaining 16 KPIs, representing the remaining 32.5% of the weights are weighted in accordance to the
relative magnitudes of their impacts: for instance, Electric Power Generators’ impact on water is 14.6 times the global
average. Its weight is: 14.6/46.475 x 32.5% = 10.21%. Please note, the below figures are for illustrative purposes, they are
not real.
CEO – Avg Pension Supplier Women Women
Innovation Percentage Employee Sustain Sanctions Clean
GHG Water Waste VOC NOx SO2 PM Employee Fund Sustain Injuries Fatalities in Exec on
Energy Capacity Tax Paid
Pay Status Score
Turnover
Mgt Boards
Pay Link Deduction Revenue
Impact
ratio 5.5 9.2 14.6 1.2 0.03 2.22 3.31 1.14 0.2 1.9 0.61 3.7 - 0.78 1.9 0.54 - - - - -
Final
Weight 3.85% 6.43% 10.21% 0.84% 0.02% 1.55% 2.31% 0.80% 0.14% 1.33% 0.43% 2.59% 2.50% 0.55% 1.33% 0.38% 5% 5% 5% 0 50%
* All figures presented here are rounded off to 1 d.p. Note: 46.475 is the total sum of the relative impact ratios.
Note: Weighting scheme is updated annually based on new datasets 14Priority indicators and weights per CK Industry Group (note
updated weights for 2019 assessment will be published in
September)
Please click on the icon below to open
the list of priority indicators and weights
for each CK Industry Group.
https://docs.google.com/spreadsheets/d/1H
FwzQNeiB6V_WWQjsYfeP8NSZpumdi1H
XK02zNeCJPc/edit#gid=241897220
15Appendix I: The F-Score
The F-Score (the Piotroski F-score) is a measure of the financial strength of a company.
The F-Score is the sum of the scores for each of nine tests. Each test scores one for a pass
and zero for a fail.
The tests are:
i) net profit is positive;
ii) operating cash flow is positive;
iii) net profit ÷ total assets at beginning of year, minus the same number for the previous
year is positive;
iv) operating cash flow is greater than net profit;
v) long term debt ÷ by average assets has not increased;
vi) the current ratio has increased (the change is more than zero, so even a negligible
increase passes the test);
vii) no raising of ordinary (common) equity over the previous year: this test is passed if the
company did not issue any ordinary shares (excluding shares from dividend reinvestment
plans and employee share plans);
viii) gross margin has improved over the previous year; and
ix) asset turnover has increased.
16Appendix II: The CK Financial Sanctions Screen
The CK Financial Sanctions screen measures the amount of money that companies have paid out
in qualifying fines, penalties or settlements on a trailing one-year (October 1, 2017 – November
30, 2018) basis.
Approach
1. Data on fines, penalties or settlements is obtained for each company. Payouts may relate to
repercussions from environmental accidents, generalized environmental pollution,
infringement of labour standards, human rights-related abuses, price-fixing, child exploitation
or violation of collective bargaining arrangements.
2. Payouts that occurred from October 1, 2017 to November 30, 2018 are totaled and converted
to USD (using the prevailing exchange rate at the time of the payout) and then divided by total
revenue reported over the same period.
3. The resulting ratio is then percent-ranked against all companies in the same CK Industry
Group.
4. Those companies that receive a bottom quartile percent score (e.g. 25% or below) are
eliminated from contention for the Global 100.
17Appendix III: Detailed scoring methodology
# Name of KPI Measurement UN Sustainable Development Goals
1 Energy In the first step, each company's Energy GOAL 7: Affordable and Clean Energy (Ensure access to affordable,
Productivity Productivity is calculated. Energy Productivity reliable, sustainable and modern energy for all)
is defined as Revenue ($PPP-converted) / Targets - Examples
A) access to electricity
Total Energy Use (GJ) – Renewable Energy
B) Energy intensity measured in terms of primary energy and GDP
Use (GJ). It is then percent‐ranked against all C) Investments in energy efficiency, facilitate access to clean energy research
of the same‐CK Industry Group peers within and technology, including renewable energy, energy efficiency and advanced
the CK coverage universe, and multiplied by and cleaner fossil-fuel technology, and promote investment in energy
0.75. In the second step, the change in each infrastructure and clean energy technology
company’s Energy Productivity over a two-year
period is calculated and percent‐ranked against GOAL 9: Industry, Innovation and Infrastructure (Build resilient
all of the same‐CK Industry Group peers within infrastructure, promote inclusive and sustainable industrialization and
foster innovation)
the CK coverage universe. If the company’s
Targets - Examples
percent‐rank is top quartile, the percent‐rank is A) Passenger and freight volumes, by mode of transport
multiplied by 1 and then by 0.25. If the B) Increase the access of small-scale industrial and other enterprises, in
company’s percent‐rank is second quartile, the particular in developing countries, to financial services, including affordable
percent‐rank is multiplied by 0.75 and then by credit, and their integration into value chains and markets. Proportion of small-
0.25. If the company’s percent‐rank is third scale industries with a loan or line of credit
C) upgrade infrastructure and retrofit industries to make them sustainable, with
quartile, the percent‐rank is multiplied by 0.5
increased resource-use efficiency and greater adoption of clean and
and then by 0.25. If the company’s environmentally sound technologies and industrial processes, reducing CO2
percent‐rank is bottom quartile, the emission per unit
percent‐rank is multiplied by 0.25 and then by D) Facilitate sustainable and resilient infrastructure development in developing
0.25. In the third step, the value from the first countries through enhanced financial, technological and technical support to
and second steps are totaled. African countries, least developed countries, landlocked developing countries
and small island developing States; infrastructure investments
E) Significantly increase access to information and communications
technology and strive to provide universal and affordable access to the
Internet in least developed countries
18Appendix III: Detailed scoring methodology
2 GHG In the first step, each company’s Greenhouse GOAL 9: Industry, Innovation and Infrastructure (Build resilient
Productivity Gas (GHG) Productivity is calculated. GHG infrastructure, promote inclusive and sustainable industrialization and
Productivity is defined as Revenue ($PPP- foster innovation)
Targets - Examples
converted) / Total Greenhouse gas (GHG)
A) Passenger and freight volumes, by mode of transport
Emissions (CO2e). Only Scope 1 and Scope 2 B) Increase the access of small-scale industrial and other enterprises, in
emissions are included according to the GHG particular in developing countries, to financial services, including affordable
Protocol. It is then percent‐ranked against all credit, and their integration into value chains and markets. Proportion of small-
of the same‐CK Industry Group peers within scale industries with a loan or line of credit
the CK coverage universe, and multiplied by C) upgrade infrastructure and retrofit industries to make them sustainable, with
0.75. In the second step, the change in each increased resource-use efficiency and greater adoption of clean and
environmentally sound technologies and industrial processes, reducing CO2
company’s GHG Productivity over a two-year
emission per unit
period is calculated and percent‐ranked D) Facilitate sustainable and resilient infrastructure development in developing
against all of the same‐CK Industry Group countries through enhanced financial, technological and technical support to
peers within the CK coverage universe. If the African countries, least developed countries, landlocked developing countries
company’s percent‐rank is top quartile, the and small island developing States; infrastructure investments
percent‐rank is multiplied by 1 and then by E) Significantly increase access to information and communications technology
and strive to provide universal and affordable access to the Internet in least
0.25. If the company’s percent‐rank is second
developed countries
quartile, the percent‐rank is multiplied by 0.75
and then by 0.25. If the company’s GOAL 13: Climate Action (Take urgent action to combat climate change
percent‐rank is third quartile, the percent‐rank and its impacts)
is multiplied by 0.5 and then by 0.25. If the Targets - Examples
company’s percent‐rank is bottom quartile, the A) adopt and implement local disaster risk reduction strategies
percent‐rank is multiplied by 0.25 and then by B) Integrate climate change measures into national policies, strategies and
planning that lower GHG and adapt to advise impacts of climate change
0.25. In the third step, the value from the first
C) Improve education (at all 3 levels, elementary, high school and post-sec),
and second steps are totaled. awareness-raising and human and institutional capacity on climate change
mitigation, adaptation, impact reduction and early warning
D) developed supporting developing countries, including finance, technology
and capacity-building, for mechanisms for raising capacities for effective
climate change-related planning and management, including focusing on
women, youth and local and marginalized communities
19Appendix III: Detailed scoring methodology (continued)
3 Water In the first step, each company's Water (UNSDGs 1/2)
Productivity Productivity is calculated. Water Productivity GOAL 6: Clean Water and Sanitation (Ensure availability and sustainable
is defined as Revenue ($PPP-converted) / management of water and sanitation for all)
Targets - Examples
Total water (m3). It is then percent‐ranked
A) protect and restore water-related ecosystems, including mountains, forests,
against all of the same‐CK Industry Group wetlands, rivers, aquifers and lakes
peers within the CK coverage universe, and B) reduce water scarcity
multiplied by 0.75. In the second step, the
change in each company’s Water GOAL 9: Industry, Innovation and Infrastructure (Build resilient infrastructure,
Productivity over a two-year period is promote inclusive and sustainable industrialization and foster innovation)
calculated and percent‐ranked against all of Targets - Examples
A) Passenger and freight volumes, by mode of transport
the same‐CK Industry Group peers within
B) Increase the access of small-scale industrial and other enterprises, in particular
the CK coverage universe. If the company’s in developing countries, to financial services, including affordable credit, and their
percent‐rank is top quartile, the percent‐rank integration into value chains and markets. Proportion of small-scale industries with
is multiplied by 1 and then by 0.25. If the a loan or line of credit
company’s percent‐rank is second quartile, C) upgrade infrastructure and retrofit industries to make them sustainable, with
the percent‐rank is multiplied by 0.75 and increased resource-use efficiency and greater adoption of clean and
environmentally sound technologies and industrial processes, reducing CO2
then by 0.25. If the company’s percent‐rank
emission per unit
is third quartile, the percent‐rank is multiplied D) Facilitate sustainable and resilient infrastructure development in developing
by 0.5 and then by 0.25. If the company’s countries through enhanced financial, technological and technical support to African
percent‐rank is bottom quartile, the countries, least developed countries, landlocked developing countries and small
percent‐rank is multiplied by 0.25 and then island developing States; infrastructure investments
by 0.25. In the third step, the value from the E) Significantly increase access to information and communications technology and
first and second steps are totaled. strive to provide universal and affordable access to the Internet in least developed
countries
20Appendix III: Detailed scoring methodology (continued)
3 Water In the first step, each company's Water (UNSDGs continued 2/2)
Productivity Productivity is calculated. Water Productivity is GOAL 15: Life on Land (Protect, restore and promote sustainable use of
defined as Revenue ($PPP-converted) / Total terrestrial ecosystems, sustainably manage forests, combat
water (m3). It is then percent‐ranked against all desertification, and halt and reverse land degradation and halt
biodiversity loss)
of the same‐CK Industry Group peers within the
Targets - Examples
CK coverage universe, and multiplied by 0.75. In A) ensure the conservation, restoration and sustainable use of terrestrial and
the second step, the change in each company’s inland freshwater biodiversity and ecosystems and their services, in particular
Water Productivity over a two-year period is forests, wetlands, mountains and drylands
calculated and percent‐ranked against all of the Sustainable forest management
same‐CK Industry Group peers within the CK Freshwater management
Combating desertification; drought and floods
coverage universe. If the company’s
B) conservation of protected areas, mountain ecosystems; reduce degradation
percent‐rank is top quartile, the percent‐rank is
of natural habitat and biodiversity loss, and prevent extinction of threatened
multiplied by 1 and then by 0.25. If the species, end poaching and trafficking of protected species
company’s percent‐rank is second quartile, the C) prevent/control invasive/alien species
percent‐rank is multiplied by 0.75 and then by D) Biodiversity policies
0.25. If the company’s percent‐rank is third
quartile, the percent‐rank is multiplied by 0.5 and
then by 0.25. If the company’s percent‐rank is
bottom quartile, the percent‐rank is multiplied by
0.25 and then by 0.25. In the third step, the value
from the first and second steps are totaled.
21Appendix III: Detailed scoring methodology (continued)
4 Waste In the first step, each company's Waste Productivity is (UNSDGs 1/2)
Productivity calculated Waste Productivity is defined as Revenue GOAL 9: Industry, Innovation and Infrastructure (Build resilient
($PPP-converted) / [Total waste generated (metric infrastructure, promote inclusive and sustainable industrialization
and foster innovation)
tonnes) – waste recycled (metric tonnes)]. It is then
Targets - Examples
percent‐ranked against all of the same‐CK Industry A) Passenger and freight volumes, by mode of transport
Group peers within the CK coverage universe, and B) Increase the access of small-scale industrial and other enterprises, in
multiplied by 0.75. In the second step, the change in particular in developing countries, to financial services, including
each company’s Waste Productivity over a two-year affordable credit, and their integration into value chains and markets.
period is calculated and percent‐ranked against all of Proportion of small-scale industries with a loan or line of credit
the same‐CK Industry Group peers within the CK C) upgrade infrastructure and retrofit industries to make them
sustainable, with increased resource-use efficiency and greater
coverage universe. If the company’s percent‐rank is
adoption of clean and environmentally sound technologies and industrial
top quartile, the percent‐rank is multiplied by 1 and processes, reducing CO2 emission per unit
then by 0.25. If the company’s percent‐rank is second D) Facilitate sustainable and resilient infrastructure development in
quartile, the percent‐rank is multiplied by 0.75 and developing countries through enhanced financial, technological and
then by 0.25. If the company’s percent‐rank is third technical support to African countries, least developed countries,
quartile, the percent‐rank is multiplied by 0.5 and then landlocked developing countries and small island developing States;
infrastructure investments
by 0.25. If the company’s percent‐rank is bottom
E) Significantly increase access to information and communications
quartile, the percent‐rank is multiplied by 0.25 and technology and strive to provide universal and affordable access to the
then by 0.25. In the third step, the value from the first Internet in least developed countries
and second steps are totaled.
22Appendix III: Detailed scoring methodology (continued)
4 Waste In the first step, each company's Waste (UNSDGs continued 2/2)
Productivity Productivity is calculated Waste GOAL 11: Sustainable Cities and Communities (Make cities and human
(continued) Productivity is defined as Revenue settlements inclusive, safe, resilient and sustainable)
Targets - Examples
($PPP-converted) / [Total waste
A) ensure access for all to adequate, safe and affordable housing and basic services,
generated (metric tonnes) – waste B) accessible and sustainable transport systems for all, improving road safety, notably
recycled (metric tonnes)]. It is then by expanding public transport, with special attention to the needs of those in vulnerable
percent‐ranked against all of the situations, women, children, persons with disabilities and older persons
same‐CK Industry Group peers within C) Strengthen efforts to protect and safeguard the world’s cultural and natural heritage
the CK coverage universe, and D) decrease deaths, missing persons and directly affected persons attributed to
multiplied by 0.75. In the second step, disasters per 100,000 population, including water-related disasters, with a focus on
protecting the poor and people in vulnerable situations, and damaged infrastructure
the change in each company’s Waste
from disasters
Productivity over a two-year period is E) reduce the adverse per capita environmental impact of cities, including by paying
calculated and percent‐ranked against special attention to air quality and municipal and other waste management: air
all of the same‐CK Industry Group pollutions, urban solid waste collection
peers within the CK coverage universe. F) inclusive and accessible, green and public spaces, in particular for women and
If the company’s percent‐rank is top children, older persons and persons with disabilities
G) integrated policies and plans towards inclusion, resource efficiency, mitigation and
quartile, the percent‐rank is multiplied
adaptation to climate change, resilience to disasters, and develop and implement
by 1 and then by 0.25. If the company’s H) financial support to the least developed countries that is allocated to the construction
percent‐rank is second quartile, the and retrofitting of sustainable, resilient and resource efficient buildings utilizing local
percent‐rank is multiplied by 0.75 and materials
then by 0.25. If the company’s
percent‐rank is third quartile, the GOAL 12: Responsible Consumption and Production (Ensure sustainable
percent‐rank is multiplied by 0.5 and consumption and production patterns)
Targets - Examples
then by 0.25. If the company’s
A) Reducing food waste
percent‐rank is bottom quartile, the B) Reducing hazardous waste, release to air, water and soil
percent‐rank is multiplied by 0.25 and C) National recycling rate, tons of material recycled
then by 0.25. In the third step, the D) Published sustainable reports
value from the first and second steps E) Sustainable procurement policies
are totaled. F) Sustainable Development and Climate Change education in national education
policies
G) Sustainable tourism strategies and policies, and monitoring
H) Phase our fossil fuel subsidies
23Appendix III: Detailed scoring methodology (continued)
5 VOC In the first step, each company's (UNSDGs 1/2)
Productivity sub-indicator Productivity is GOAL 3: Good Health and Well-being (Ensure healthy lives and promote well-being
calculated by dividing Revenue for all at all ages)
Targets - Examples
($PPP-converted) by the air
A) reduce the global maternal mortality ratio; reproductive health-care services
pollutant. It is then percent‐ranked B) end the epidemics of AIDS, tuberculosis, malaria and neglected tropical diseases and
against all of the same‐CK Industry combat hepatitis, water-borne diseases and other communicable diseases; substance
Group peers within the CK abuse prevention
6 NOx coverage universe, and multiplied C) Achieve universal health coverage, including financial risk protection, access to quality
essential health-care services and access to safe, effective, quality and affordable essential
Productivity by 0.75. In the second step, the
change in each company’s sub- medicines and vaccines for all
D) reduce the number of deaths and illnesses from hazardous chemicals and air, water and
indicator Productivity over a two-
soil pollution and contamination
year period is calculated and E) health worker training and retention
percent‐ranked against all of the
same‐CK Industry Group peers GOAL 9: Industry, Innovation and Infrastructure (Build resilient infrastructure,
within the CK coverage universe. If promote inclusive and sustainable industrialization and foster innovation)
7 SOx Targets - Examples
the company’s percent‐rank is top
Productivity A) Passenger and freight volumes, by mode of transport
quartile, the percent‐rank is
B) Increase the access of small-scale industrial and other enterprises, in particular in
multiplied by 1 and then by 0.25. If developing countries, to financial services, including affordable credit, and their integration
the company’s percent‐rank is into value chains and markets. Proportion of small-scale industries with a loan or line of
second quartile, the percent‐rank is credit
multiplied by 0.75 and then by 0.25. C) upgrade infrastructure and retrofit industries to make them sustainable, with increased
If the company’s percent‐rank is resource-use efficiency and greater adoption of clean and environmentally sound
8 Particulate third quartile, the percent‐rank is technologies and industrial processes, reducing CO2 emission per unit
Matter D) Facilitate sustainable and resilient infrastructure development in developing countries
multiplied by 0.5 and then by 0.25.
Productivity through enhanced financial, technological and technical support to African countries, least
If the company’s percent‐rank is developed countries, landlocked developing countries and small island developing States;
bottom quartile, the percent‐rank is infrastructure investments
multiplied by 0.25 and then by 0.25. E) Significantly increase access to information and communications technology and strive to
In the third step, the value from the provide universal and affordable access to the Internet in least developed countries
first and second steps are totaled.
24Appendix III: Detailed scoring methodology (continued)
5 VOC Productivity In the first step, each company's (UNSDGs continued 2/2)
sub-indicator Productivity is GOAL 11: Sustainable Cities and Communities (Make cities and human
calculated by dividing Revenue settlements inclusive, safe, resilient and sustainable)
Targets - Examples
($PPP-converted) by the air
A) ensure access for all to adequate, safe and affordable housing and basic services,
pollutant. It is then percent‐ranked B) accessible and sustainable transport systems for all, improving road safety, notably
against all of the same‐CK Industry by expanding public transport, with special attention to the needs of those in vulnerable
Group peers within the CK situations, women, children, persons with disabilities and older persons
coverage universe, and multiplied C) Strengthen efforts to protect and safeguard the world’s cultural and natural heritage
6 NOx Productivity
by 0.75. In the second step, the D) decrease deaths, missing persons and directly affected persons attributed to
change in each company’s sub- disasters per 100,000 population, including water-related disasters, with a focus on
protecting the poor and people in vulnerable situations, and damaged infrastructure
indicator Productivity over a two-
from disasters
year period is calculated and E) reduce the adverse per capita environmental impact of cities, including by paying
percent‐ranked against all of the special attention to air quality and municipal and other waste management: air
same‐CK Industry Group peers pollutions, urban solid waste collection
within the CK coverage universe. If F) inclusive and accessible, green and public spaces, in particular for women and
7 SOx Productivity the company’s percent‐rank is top children, older persons and persons with disabilities
G) integrated policies and plans towards inclusion, resource efficiency, mitigation and
quartile, the percent‐rank is
adaptation to climate change, resilience to disasters, and develop and implement
multiplied by 1 and then by 0.25. If H) financial support to the least developed countries that is allocated to the
the company’s percent‐rank is construction and retrofitting of sustainable, resilient and resource efficient buildings
second quartile, the percent‐rank utilizing local materials
is multiplied by 0.75 and then by
0.25. If the company’s GOAL 12: Responsible Consumption and Production (Ensure sustainable
consumption and production patterns)
8 Particulate Matter percent‐rank is third quartile, the
Targets - Examples
Productivity percent‐rank is multiplied by 0.5
A) Reducing food waste
and then by 0.25. If the company’s B) Reducing hazardous waste, release to air, water and soil
percent‐rank is bottom quartile, the C) National recycling rate, tons of material recycled
percent‐rank is multiplied by 0.25 D) Published sustainable reports
and then by 0.25. In the third step, E) Sustainable procurement policies
the value from the first and second F) Sustainable Development and Climate Change education in national education
steps are totaled. policies
G) Sustainable tourism strategies and policies, and monitoring
H) Phase our fossil fuel subsidies
25Appendix III: Detailed scoring methodology (continued)
9 Innovation In the first step, each GOAL 8: Decent Work and Economic Growth (Promote sustained, inclusive and sustainable
Capacity company's Innovation economic growth, full and productive employment and decent work for all)
Capacity score is Target - Examples
A) Achieve higher levels of economic productivity through diversification, technological upgrading and
determined by
innovation, including through a focus on high-value added and labour-intensive sectors
measuring the ratio of B) policies that support productive activities, decent job creation, entrepreneurship, creativity and
research and innovation, and encourage the formalization and growth of micro-, small- and medium-sized enterprises,
development (R&D) including through access to financial services
expenditures to total C) labour rights
revenue averaged over D) devise and implement policies to promote sustainable tourism that creates jobs and promotes local
a trailing three‐year culture and products
E) encourage and expand access to banking, insurance and financial services for all
period. In the second
step, each company's GOAL 9: Industry, Innovation and Infrastructure (Build resilient infrastructure, promote inclusive
Innovation Capacity and sustainable industrialization and foster innovation )
score is Targets - Examples
percent‐ranked against A) Passenger and freight volumes, by mode of transport
all of the same‐CK B) Increase the access of small-scale industrial and other enterprises, in particular in developing
countries, to financial services, including affordable credit, and their integration into value chains and
Industry Group peers
markets. Proportion of small-scale industries with a loan or line of credit
within the CK coverage C) upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use
universe. efficiency and greater adoption of clean and environmentally sound technologies and industrial processes,
reducing CO2 emission per unit
D) Facilitate sustainable and resilient infrastructure development in developing countries through
enhanced financial, technological and technical support to African countries, least developed countries,
landlocked developing countries and small island developing States; infrastructure investments
E) Significantly increase access to information and communications technology and strive to provide
universal and affordable access to the Internet in least developed countries
26Appendix III: Detailed scoring methodology (continued)
10 Percentage In the first step, each company's GOAL 10: Reduced Inequality (Reduce inequality within and among countries)
Tax Paid Percentage Tax Paid is calculated as Targets - Examples
the amount of taxes paid in cash over a A) empower and promote the social, economic and political inclusion of all, irrespective
of age, sex, disability, race, ethnicity, origin, religion or economic or other status: equal
trailing five year period (2013-2017)
wage, reduce discrimination and harassment, migration processes
divided by their total EBITDA over the B) Improve the regulation and monitoring of global financial markets and institutions and
same period. Companies score a 0% in strengthen the implementation of such regulations
the event that their total EBITDA or C) official development assistance and financial flows, including foreign direct
taxes paid in cash is zero or lower over investment, to States where the need is greatest, in particular least; resource flows for
the five year period (2013-2017). In the development; remittance costs, zero-tariff
second step, each company's
Percentage Tax Paid is percent‐ranked
against all of the same‐CK Industry
Group peers within the CK coverage
universe.
27Appendix III: Detailed scoring methodology (continued)
11 CEO- Each company's CEO to GOAL 8: Decent Work and Economic Growth (Promote sustained, inclusive and
Average Average Employee Pay sustainable economic growth, full and productive employment and decent work for all)
Employee ratio is calculated as total Target - Examples
A) Achieve higher levels of economic productivity through diversification, technological upgrading
Pay CEO compensation divided
and innovation, including through a focus on high-value added and labour-intensive sectors
by average employee B) policies that support productive activities, decent job creation, entrepreneurship, creativity and
compensation. Average innovation, and encourage the formalization and growth of micro-, small- and medium-sized
employee compensation is enterprises, including through access to financial services
calculated by dividing the C) labour rights
company’s total wage bill D) devise and implement policies to promote sustainable tourism that creates jobs and promotes
by the total number of local culture and products
E) encourage and expand access to banking, insurance and financial services for all
employees. Each
company's CEO to Average
GOAL 10: Reduced Inequality (Reduce inequality within and among countries)
Employee Pay ratio is Targets - Examples
percent‐ranked against all A) empower and promote the social, economic and political inclusion of all, irrespective of age,
of the same‐CK Industry sex, disability, race, ethnicity, origin, religion or economic or other status: equal wage, reduce
Group peers within the CK discrimination and harassment, migration processes
coverage universe. [The B) Improve the regulation and monitoring of global financial markets and institutions and
strengthen the implementation of such regulations
lower the ratio, the higher
C) official development assistance and financial flows, including foreign direct investment, to
the rank.] States where the need is greatest, in particular least; resource flows for development; remittance
costs, zero-tariff
28Appendix III: Detailed scoring methodology (continued)
12 Pension In the first step, the sum of the company’s GOAL 1: No Poverty (End poverty in all its forms everywhere)
Fund Status contribution to the defined benefit and defined Targets - Examples
contribution pension plans are added up, then A) ensure that all men and women, have equal rights to economic resources, as
well as access to basic services, ownership and control over land and other
divided by the total number of full-time
forms of property, inheritance, natural resources, appropriate new technology
equivalent employees. This ratio is then and financial services, including microfinance
percent-ranked against all of the same-CK B) build the resilience of the poor and those in vulnerable situations and reduce
Industry Group peers within the CK coverage their exposure and vulnerability to climate-related extreme events and other
universe. This is labelled as “A” economic, social and environmental shocks and disasters
C) government spending on essential services (education, health and social
In the second step, the fair value of the protection)
defined benefit plan assets is divided by the
GOAL 8: Decent Work and Economic Growth (Promote sustained,
total number of full-time equivalent inclusive and sustainable economic growth, full and productive
employees; this ratio is then percent-ranked employment and decent work for all)
against all of the same-CK Industry Group Target - Examples
peers within the CK coverage universe. This A) Achieve higher levels of economic productivity through diversification,
is labelled as “B”, technological upgrading and innovation, including through a focus on high-value
added and labour-intensive sectors
B) policies that support productive activities, decent job creation,
In the third step, the fair value of the defined entrepreneurship, creativity and innovation, and encourage the formalization and
benefit plan assets is divided by the projected growth of micro-, small- and medium-sized enterprises, including through
defined benefit plan obligations, then percent- access to financial services
ranked against all of the same-CK Industry C) labour rights
Group peers within the CK coverage D) devise and implement policies to promote sustainable tourism that creates
universe. This is labelled as “C”. jobs and promotes local culture and products
E) encourage and expand access to banking, insurance and financial services
for all
The Pension Fund Status Score is arrived at
by the following formula: (0.75 x A) + 0.25(B –
(1 – C))
29Appendix III: Detailed scoring methodology (continued)
13 Supplier Each company's (UNSDGs 1/7)
Sustainability largest suppliers (up GOAL 1: No Poverty (End poverty in all its forms everywhere)
Score to ten) by total Targets - Examples
A) ensure that all men and women, have equal rights to economic resources, as well as access to basic
spend are identified
services, ownership and control over land and other forms of property, inheritance, natural resources,
based on FactSet appropriate new technology and financial services, including microfinance
data. The suppliers B) build the resilience of the poor and those in vulnerable situations and reduce their exposure and
are then weighted vulnerability to climate-related extreme events and other economic, social and environmental shocks and
and scored using disasters
the Global 100 C) government spending on essential services (education, health and social protection)
methodology,
GOAL 2: Zero Hunger (End hunger, achieve food security and improved nutrition and promote
excluding the
sustainable agriculture)
Supplier Targets - Examples
Sustainability Score A) double the agricultural productivity and incomes of small-scale food producers, in particular women,
KPI. indigenous peoples, family farmers, pastoralists and fishers,
B)Increase investment, including through enhanced international cooperation, in rural infrastructure,
agricultural research and extension services, technology development and plant and livestock gene banks
C) Correct and prevent trade restrictions and distortions in world agricultural markets, food prices
GOAL 3: Good Health and Well-being (Ensure healthy lives and promote well-being for all at all
ages)
Targets - Examples
A) reduce the global maternal mortality ratio; reproductive health-care services
B) end the epidemics of AIDS, tuberculosis, malaria and neglected tropical diseases and combat hepatitis,
water-borne diseases and other communicable diseases; substance abuse prevention
C) Achieve universal health coverage, including financial risk protection, access to quality essential
health-care services and access to safe, effective, quality and affordable essential medicines and
vaccines for all
D) reduce the number of deaths and illnesses from hazardous chemicals and air, water and soil pollution
and contamination
E) health worker training and retention
30Appendix III: Detailed scoring methodology (continued)
13 Supplier Each company's (UNSDGs continued 2/7)
Sustainability largest suppliers (up GOAL 5: Gender Equality (Achieve gender equality and empower all women and girls)
Score to ten) by total Targets - Examples
A) End all forms of discrimination against all women and girls everywhere, Proportion of women in
spend are identified
managerial positions, govt, etc.
based on FactSet B) Recognize and value unpaid care and domestic work through the provision of public services,
data. The suppliers infrastructure and social protection policies and the promotion of shared responsibility within the
are then weighted household and the family as nationally appropriate
and scored using C) Ensure universal access to sexual and reproductive health and reproductive rights
the Global 100
methodology, GOAL 6: Clean Water and Sanitation (Ensure availability and sustainable management of water
and sanitation for all)
excluding the
Targets - Examples
Supplier A) protect and restore water-related ecosystems, including mountains, forests, wetlands, rivers, aquifers
Sustainability Score and lakes
KPI. B) reduce water scarcity
GOAL 7: Affordable and Clean Energy (Ensure access to affordable, reliable, sustainable and
modern energy for all)
Targets - Examples
A) access to electricity
B) Energy intensity measured in terms of primary energy and GDP
C) Investments in energy efficiency, facilitate access to clean energy research and technology, including
renewable energy, energy efficiency and advanced and cleaner fossil-fuel technology, and promote
investment in energy infrastructure and clean energy technology
31Appendix III: Detailed scoring methodology (continued)
13 Supplier Each company's (UNSDGs continued 3/7)
Sustainability largest suppliers (up GOAL 8: Decent Work and Economic Growth (Promote sustained, inclusive and sustainable
Score to ten) by total economic growth, full and productive employment and decent work for all)
Target - Examples
spend are identified
A) Achieve higher levels of economic productivity through diversification, technological upgrading and
based on FactSet innovation, including through a focus on high-value added and labour-intensive sectors
data. The suppliers B) policies that support productive activities, decent job creation, entrepreneurship, creativity and
are then weighted innovation, and encourage the formalization and growth of micro-, small- and medium-sized enterprises,
and scored using including through access to financial services
the Global 100 C) labour rights
methodology, D) devise and implement policies to promote sustainable tourism that creates jobs and promotes local
culture and products
excluding the
E) encourage and expand access to banking, insurance and financial services for all
Supplier
Sustainability Score GOAL 9: Industry, Innovation and Infrastructure (Build resilient infrastructure, promote inclusive
KPI. and sustainable industrialization and foster innovation )
Targets - Examples
A) Passenger and freight volumes, by mode of transport
B) Increase the access of small-scale industrial and other enterprises, in particular in developing
countries, to financial services, including affordable credit, and their integration into value chains and
markets. Proportion of small-scale industries with a loan or line of credit
C) upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use
efficiency and greater adoption of clean and environmentally sound technologies and industrial processes,
reducing CO2 emission per unit
D) Facilitate sustainable and resilient infrastructure development in developing countries through
enhanced financial, technological and technical support to African countries, least developed countries,
landlocked developing countries and small island developing States; infrastructure investments
E) Significantly increase access to information and communications technology and strive to provide
universal and affordable access to the Internet in least developed countries
32Appendix III: Detailed scoring methodology (continued)
13 Supplier Each company's (UNSDGs continued 4/7)
Sustainability largest suppliers (up GOAL 10: Reduced Inequality (Reduce inequality within and among countries)
Score to ten) by total Targets - Examples
A) empower and promote the social, economic and political inclusion of all, irrespective of age, sex,
spend are identified
disability, race, ethnicity, origin, religion or economic or other status: equal wage, reduce discrimination
based on FactSet and harassment, migration processes
data. The suppliers B) Improve the regulation and monitoring of global financial markets and institutions and strengthen the
are then weighted implementation of such regulations
and scored using C) official development assistance and financial flows, including foreign direct investment, to States where
the Global 100 the need is greatest, in particular least; resource flows for development; remittance costs, zero-tariff
methodology,
GOAL 11: Sustainable Cities and Communities (Make cities and human settlements inclusive,
excluding the
safe, resilient and sustainable)
Supplier Targets - Examples
Sustainability Score A) ensure access for all to adequate, safe and affordable housing and basic services,
KPI. B) accessible and sustainable transport systems for all, improving road safety, notably by expanding
public transport, with special attention to the needs of those in vulnerable situations, women, children,
persons with disabilities and older persons
C) Strengthen efforts to protect and safeguard the world’s cultural and natural heritage
D) decrease deaths, missing persons and directly affected persons attributed to disasters per 100,000
population, including water-related disasters, with a focus on protecting the poor and people in vulnerable
situations, and damaged infrastructure from disasters
E) reduce the adverse per capita environmental impact of cities, including by paying special attention to
air quality and municipal and other waste management: air pollutions, urban solid waste collection
F) inclusive and accessible, green and public spaces, in particular for women and children, older persons
and persons with disabilities
G) integrated policies and plans towards inclusion, resource efficiency, mitigation and adaptation to
climate change, resilience to disasters, and develop and implement
H) financial support to the least developed countries that is allocated to the construction and retrofitting of
sustainable, resilient and resource efficient buildings utilizing local materials
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